Abstract
While human nature may be a constant, investors have broadened their horizons, investing in emerging markets and, most recently, the frontier markets (those markets not in the popular emerging market indexes). As they have done so, investors have run head on into cultural differences, behavioral differences, and biases that present challenges from many perspectives. Behavioral finance has explored many aspects of investors' behavior, and we can apply this groundwork to understanding frontier markets from the perspective of foreign, professional and local investors. Across countries, there are significant differences in behavior based on the familiarity bias, trust, loss aversion, and risk preference. Considering these behavioral elements can lead to some insights that investors should keep in mind when investing in frontier markets.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
